UK eases Russian oil sanctions

Britain this week carved out a new sanctions exemption for Russian-origin oil products refined outside Russia, allowing imports of diesel and jet fuel into the UK under a general trade licence. The Department for Business and Trade published the licence on May 19, two days before updated statutory guidance said the underlying import prohibition on such processed oil products applied from May 20. The change came as fuel markets were strained by the Middle East conflict and the prolonged closure of the Strait of Hormuz, according to reporting by the Associated Press and other outlets. EU officials said they would not follow London in easing restrictions on Russian energy. ### What exactly did the UK allow? The Department for Business and Trade said the new general trade licence permits the import into the UK of diesel and jet fuel “processed in third countries from Russian crude oil.” The notice lists diesel under HS codes 2710 19 42 and 2710 19 44, and jet fuel under HS code 2710 19 21. It also permits certain services and related actions tied to those imports, subject to a record-keeping requirement. (gov.uk) The UK’s statutory guidance, updated on May 20, says the import prohibition in regulation 46Z9F for “relevant oil products processed in third countries from Russian origin crude oil” applies from May 20, 2026. In practice, the licence and the prohibition took effect at the same time, creating a route for the goods to continue entering Britain under a sanctioned-trade exemption. (gov.uk) ### Where did this ban come from in the first place? The Foreign, Commonwealth and Development Office’s explanatory memorandum for the 2026 amendment regulations says the instrument introduced new import prohibitions on “refined oil products made from Russian-origin crude.” The memorandum describes the measure as part of a wider package adding trade and transport sanctions and strengthening earlier restrictions. (gov.uk) The sanctions framework remains aimed at pressuring Moscow over Ukraine. The UK’s statutory guidance says the Russia sanctions regulations are intended to encourage Russia to cease actions that destabilise Ukraine or threaten its territorial integrity, sovereignty and independence. ### Why is the timing drawing attention? (legislation.gov.uk) G7 finance ministers and central bank governors said in a communiqué on May 19 that they reaffirmed an “unwavering commitment” to continue imposing “severe costs” on Russia and would consider additional pressure on sectors including energy. Britain signed onto that language the same day its trade department published the licence. (gov.uk) The Associated Press reported the British government linked the move to the cost-of-living squeeze and fuel market disruption caused by the Middle East war. Al Jazeera, citing AFP and AP, reported that ministers eased the sanctions amid soaring fuel prices and the continued closure of Hormuz. ### How has Brussels responded? (mof.go.jp) Paula Pinho, the European Commission’s chief spokesperson, said on Wednesday that the bloc remained committed to sanctions on Russian oil and gas. “We will not comment on what other countries are doing on sanctions regarding Russia,” Pinho said, according to Euractiv. “We remain committed to our sanctions on imports of Russian oil and gas.” (apnews.com) Pinho also said, “We reiterate the call for Russia not to benefit from the ongoing conflict in the Middle East.” Euractiv reported that the Commission had no plans to ease sanctions on Russian energy even after the U.S. renewed a waiver on Russian crude oil sanctions and the UK followed with its own licence. (euractiv.com) ### What happens next? The UK licence published on May 19 is now in force and requires importers using it to keep records, according to the Department for Business and Trade. The government’s sanctions guidance directs businesses to check current regulations and related licensing material as the regime is updated. The next major political test is the G7 summit in Évian-les-Bains, France, scheduled for June 15-17, where Russia and energy security are expected to remain on the agenda. (euractiv.com) (gov.uk)